Correlation Between Mitra Pinasthika and Jasuindo Tiga
Can any of the company-specific risk be diversified away by investing in both Mitra Pinasthika and Jasuindo Tiga at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mitra Pinasthika and Jasuindo Tiga into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitra Pinasthika Mustika and Jasuindo Tiga Perkasa, you can compare the effects of market volatilities on Mitra Pinasthika and Jasuindo Tiga and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mitra Pinasthika with a short position of Jasuindo Tiga. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitra Pinasthika and Jasuindo Tiga.
Diversification Opportunities for Mitra Pinasthika and Jasuindo Tiga
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mitra and Jasuindo is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mitra Pinasthika Mustika and Jasuindo Tiga Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasuindo Tiga Perkasa and Mitra Pinasthika is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mitra Pinasthika Mustika are associated (or correlated) with Jasuindo Tiga. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasuindo Tiga Perkasa has no effect on the direction of Mitra Pinasthika i.e., Mitra Pinasthika and Jasuindo Tiga go up and down completely randomly.
Pair Corralation between Mitra Pinasthika and Jasuindo Tiga
Assuming the 90 days trading horizon Mitra Pinasthika Mustika is expected to generate 0.56 times more return on investment than Jasuindo Tiga. However, Mitra Pinasthika Mustika is 1.8 times less risky than Jasuindo Tiga. It trades about 0.02 of its potential returns per unit of risk. Jasuindo Tiga Perkasa is currently generating about 0.01 per unit of risk. If you would invest 89,607 in Mitra Pinasthika Mustika on September 3, 2024 and sell it today you would earn a total of 9,393 from holding Mitra Pinasthika Mustika or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mitra Pinasthika Mustika vs. Jasuindo Tiga Perkasa
Performance |
| Timeline |
| Mitra Pinasthika Mustika |
| Jasuindo Tiga Perkasa |
Mitra Pinasthika and Jasuindo Tiga Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitra Pinasthika and Jasuindo Tiga
The main advantage of trading using opposite Mitra Pinasthika and Jasuindo Tiga positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitra Pinasthika position performs unexpectedly, Jasuindo Tiga can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jasuindo Tiga will offset losses from the drop in Jasuindo Tiga's long position.| Mitra Pinasthika vs. Saratoga Investama Sedaya | Mitra Pinasthika vs. Puradelta Lestari PT | Mitra Pinasthika vs. Cikarang Listrindo Tbk | Mitra Pinasthika vs. Erajaya Swasembada Tbk |
| Jasuindo Tiga vs. Intanwijaya Internasional Tbk | Jasuindo Tiga vs. Champion Pacific Indonesia | Jasuindo Tiga vs. Mitra Pinasthika Mustika | Jasuindo Tiga vs. Jakarta Int Hotels |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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